# BIS - The Changing Nexus Between Commodity Prices And The Dollar: Causes And Implications

> A BIS paper by Hofmann, Igan and Rees, dated April 13, 2023, finds that commodity prices and the US dollar have recently moved together, breaking their usual inverse pattern. The authors attribute the shift to a mix of temporary shocks and structural factors, including the US becoming a net energy exporter. They warn that the change adds stagflation pressure for commodity importers.

- Date: 2023-04-13 · published 2023-04-13T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/36298-bis-the-changing-nexus-between-commodity-prices-and-the-dollar-causes-and
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md)

## Why it matters

If commodity prices and the dollar keep rising together, importing countries face higher costs for feed inputs and weaker currencies, which can squeeze buyers' margins.

## Read by commodity

- DXY: neutral
- WTI: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2017-03-07 | [The correlation between USD and commodities is now gone: Citi](https://feedsoft.ai/events/71920-the-correlation-between-usd-and-commodities-is-now-gone-citi.md) | -0.0% | -1.3% |
| DXY | 2017-09-12 | [Does the Weaker Dollar Push Up Commodities Prices?    - WSJ](https://feedsoft.ai/events/68879-does-the-weaker-dollar-push-up-commodities-prices-wsj.md) | +0.5% | +2.0% |
| DXY | 2025-06-04 | [Commodities: What the dollar-yield disconnect means for prices](https://feedsoft.ai/events/24112-commodities-what-the-dollar-yield-disconnect-means-for-prices.md) | -0.3% | -1.8% |
| DXY | 2023-05-29 | [Inflation Shows No Signs of Cooling. What Does That Mean For Commodity Prices? \| FXEmpire](https://feedsoft.ai/events/35850-inflation-shows-no-signs-of-cooling-what-does-that-mean-for-commodity-prices.md) | -0.5% | -1.4% |
| DXY | 2021-10-18 | [How does dollar impact inflation? Watch commodities](https://feedsoft.ai/events/44437-how-does-dollar-impact-inflation-watch-commodities.md) | -0.4% | +0.4% |
| WTI | 2023-05-29 | [Inflation Shows No Signs of Cooling. What Does That Mean For Commodity Prices? \| FXEmpire](https://feedsoft.ai/events/35850-inflation-shows-no-signs-of-cooling-what-does-that-mean-for-commodity-prices.md) | -0.4% | -6.6% |
| WTI | 2023-10-16 | [The dollar has joined the commodity currency club](https://feedsoft.ai/events/33536-the-dollar-has-joined-the-commodity-currency-club.md) | +1.5% | -12.6% |
| WTI | 2024-09-19 | [How commodity prices perform following rate cuts: Analysts](https://feedsoft.ai/events/28218-how-commodity-prices-perform-following-rate-cuts-analysts.md) | -1.9% | -1.1% |

## Sources

- mondovisione.com: https://mondovisione.com/media-and-resources/news/bis-the-changing-nexus-between-commodity-prices-and-the-dollar-causes-and-imp-2023413/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.